Skip to content

Is Investment Management a Good Career Path?

Investment management career path

The financial industry is going through a technological revamp, and one of the roles that have emerged with that shift is investment management. Currently, a career in the traditional financial sector calls for further training on different methods of operation and a general up-skilling in the area and use of technology. 

If you are a young professional in this field, eager to learn new and emerging technologies and broaden your financial knowledge, you may likely find a path in investment management.

Investment management career path  

What Is Investment Management?

As a professional investment manager, one of your core roles is to oversee and manage financial portfolios for the company’s clients and assist them where necessary. Clients may range from institutional investors (insurance providers, pension funds, NGOs) to private citizens. Their investment portfolios may include securities such as equities, options, bonds, mutual funds, real estate, annuities, and commodities.

You will work closely with your clients as an investment manager to factor in and create short- or long-term investment strategies. You could also have clients who want both a long-term and short-term strategy designed for them. Market conditions, the investor’s risk appetite, and personal objectives will greatly influence these strategies. 

As an investment manager, your daily task might involve the following: 

  • Create investor profiles using data from financial statements, goals, risk tolerance, and other key factors.
  • Suggest viable stock options to clients.
  • Track client portfolios. 
  • Determine KPIs for each customer. 
  • Suggest relevant investments after carefully considering the investor profile.
  • Analyze publicly traded stocks.
  • Improve a multi-asset investment portfolio. 
  • Provide updates and answer client inquiries.
See also  The 10 Most Popular Part-time Campus Jobs for Students in the US

Who are Investment Managers?

An investment manager can be an individual or a business/firm. They are in charge of investing the funds provided by clients. They undertake the financial planning, investment, and management of their client’s portfolios. 

They are versed in the risks and rewards of investment and so use that knowledge to oversee, analyze, and undertake research while making pertinent investment decisions. 

How Much Do Jobs in Investment Management Pay?

In 2001, the median annual salary for financial managers was $131,710, according to the U.S. Bureau of Labor Statistics. Still, according to the same statistics, the median annual income for the top 10% of earners was $208,000. 

A typical financial analyst’s median annual income was $81,410 in May 2021. The role of a financial analyst is an entry-level position for a future investment manager. This is noteworthy because it is higher than the median annual pay for all occupations twice as over. 

Getting Started as an Investment Manager

To commence a career in investment management, one needs to possess a bachelor’s degree in economics or financial management. You’ll also be required to develop some financial industry experience.

Another beneficial boost as a young professional in this sector would be to obtain certifications and licenses and be a member of professional bodies. Most investment managers start as analysts, which has been proven to aid them in gaining the requisite experience to blossom in the field. 

You may start by submitting a resume for a position as a portfolio manager.

Why Become an Investment Manager?

Deciding to pursue a career in investment management may be due to a plethora of reasons. Here, we will discuss the top advantages for a young professional in investment management. 

  • Strong Career Field

To qualify for an entry-level investment management role, you must possess a bachelor’s degree. This requirement enables you to become an employee sooner than positions that require an advanced degree. This also ensures an investment manager can kick start their career immediately after leaving school. 

  • Financial Perks

With a career in investment management, there’s a high probability of huge revenue generation. It is financially rewarding as you can work with big corporations or wealthy clients who want their finances secured through investments. 

See also  Is Military/Government/Technical A Good Career Path?

A highly profitable investment manager could even charge higher rates, which would automatically translate to more revenue for such a manager. 

  • Professional Fulfillment

The value you provide to your clients can be enormous as an investment manager. It is also positive to note that due to the quantitative nature of the activity, it is quite simple to evaluate performance levels. For successful investment managers, the knowledge of the amount of value they provide can, most times, be a source of professional satisfaction for them. 

Is Becoming an Investment Manager A Good Career Path?

From the foregoing, we can all agree that having a career in investment management can be both successful and rewarding. You will most certainly thrive in this sector if you are a young professional, ambitious, and willing to learn new financial techniques and concepts. 

You’ll need to possess an interest in the sector and have some analytical abilities, expertise, and requisite knowledge to establish a successful investment management career.